agnut
29th April 2014, 04:18 PM
Ch…Ch…Ch… Changes
I just called a large PM dealer I have known for several years in order to find out where his company stood regarding physical silver.
The first thing he said when I asked how sales were was that they were “selling a crapload of silver”.
Curious, I asked where he was acquiring this “crapload”. I was at first surprised that he said that only about 2% was coming from the street, meaning the public coming in and selling to him. The other 98% was coming from large dealers whom he has a long term relationships. Something to think about; almost nobody is turning in their silver unless they have taxes to pay or have a desperate need for dollars.
I wonder what smaller PM shops who are not as well connected are doing for their silver restocking. Are they out; has the pipeline shut down for them ?
He also said that the silver rounds he is getting are mostly newly minted one ounce rounds. To me, this means that these dealers are almost completely relying on what the mines produce AND how fast they are minting the rounds. A very tenuous situation indeed.
He also said that he has been watching BofA, believing that they are in trouble which would signal a real effect if they were to go under.
Lastly he said that if a major bank does fail that the price would shoot up and the premium might be $5 or more over spot price.
Let’s see; only 2% silver coming from the customers. And 98% coming from big silver dealers; mostly newly minted silver rounds. And “craploads” of silver being bought daily. And BofA on his watch list. Looks like physical silver availability is on the edge of becoming a serious concern; not just the spot price or the premium.
The recent Ted Butler article “The World’s Most Undervalued Asset” states that silver is that asset. But for how long until either the price, availability or the premium upset the applecart ? Not to mention all the things going on in the world, either manmade or natural.
And last but not least is the recent article from Richard Russell of The Dow Theory Letters entitled “The Dollar Will Crash In A Matter Of Months”. If he is correct, how would you feel if the dollar lost 80% of its purchasing power and silver’s spot price rose relative to the dollar. Hmmm… wouldn’t that make silver spot price about $100 ? OH MY GOD !
With all thy getting, get gold and silver.
Best wishes, agnut
"All the perplexities, confusion and distress in America arises not from deficits in the Constitution or Confederation , nor from want of honor and virtue, so much as downright ignorance of the nature of coin, credit, and circulation." -- John Adams
"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." -- Lord Acton
"Life is not about waiting for the storms to pass... it's about learning how to dance in the rain!" -- Patrick H. Hughes
I just called a large PM dealer I have known for several years in order to find out where his company stood regarding physical silver.
The first thing he said when I asked how sales were was that they were “selling a crapload of silver”.
Curious, I asked where he was acquiring this “crapload”. I was at first surprised that he said that only about 2% was coming from the street, meaning the public coming in and selling to him. The other 98% was coming from large dealers whom he has a long term relationships. Something to think about; almost nobody is turning in their silver unless they have taxes to pay or have a desperate need for dollars.
I wonder what smaller PM shops who are not as well connected are doing for their silver restocking. Are they out; has the pipeline shut down for them ?
He also said that the silver rounds he is getting are mostly newly minted one ounce rounds. To me, this means that these dealers are almost completely relying on what the mines produce AND how fast they are minting the rounds. A very tenuous situation indeed.
He also said that he has been watching BofA, believing that they are in trouble which would signal a real effect if they were to go under.
Lastly he said that if a major bank does fail that the price would shoot up and the premium might be $5 or more over spot price.
Let’s see; only 2% silver coming from the customers. And 98% coming from big silver dealers; mostly newly minted silver rounds. And “craploads” of silver being bought daily. And BofA on his watch list. Looks like physical silver availability is on the edge of becoming a serious concern; not just the spot price or the premium.
The recent Ted Butler article “The World’s Most Undervalued Asset” states that silver is that asset. But for how long until either the price, availability or the premium upset the applecart ? Not to mention all the things going on in the world, either manmade or natural.
And last but not least is the recent article from Richard Russell of The Dow Theory Letters entitled “The Dollar Will Crash In A Matter Of Months”. If he is correct, how would you feel if the dollar lost 80% of its purchasing power and silver’s spot price rose relative to the dollar. Hmmm… wouldn’t that make silver spot price about $100 ? OH MY GOD !
With all thy getting, get gold and silver.
Best wishes, agnut
"All the perplexities, confusion and distress in America arises not from deficits in the Constitution or Confederation , nor from want of honor and virtue, so much as downright ignorance of the nature of coin, credit, and circulation." -- John Adams
"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." -- Lord Acton
"Life is not about waiting for the storms to pass... it's about learning how to dance in the rain!" -- Patrick H. Hughes